Kbc Group N.v. · EURONEXT:KBC
Kbc — Debt Investor Presentation (January 2024)
30 slides from Kbc's debt investor presentation, Jan 9, 2024
Slide 1: KBC Group Revised Green bond framework
1 of 30 KBC Group Revised Green bond framework Investor presentation January 2024 More information: www.kbc.com KBC Group - Investor Relations Office: IR4U@kbc.be
Slide 2: KBC Group passport | Well-defined core markets
KBC Group passport | Well-defined core markets 2 of 30 BELGIUM BU INTERNATIONAL MARKETS BU GDP growth SK HU BG in %, KBC Economics debt to 60% of assets GDP ratio 4% of assets 4% of assets 4% of assets 3.9m clients 105% 0.8m clients 1.6m clients 2.2m clients 436 branches 3.2% 103 branches 195 branch
Slide 3: What differentiates us from peers
What differentiates us from peers 3 of 30 Unique integrated Successful digital-first Firmly embedded Core shareholder bank-insurance+ model approach through KATE sustainability strategy structure • We offer an integrated response • Our Digital interaction with clients • As a company that aims to sup
Slide 4: Our financial footprint
Our financial footprint 4 of 30 High profitability (IFRS 17 figures) Solid capital position combined CET 1 ratio (fully loaded, Danish compromise) C/I ratio* ratio net result in % 49% FY22 2,818m FY22 17.1% 17.6% 87% FY22 16.3% 16.0% 48% 9M23 2,725m 9M23 15.8% 15.5% 15.3% 85% 9M23 14.6% * Adjusted f
Slide 5: Net interest income and customer money dynamic
Net interest income and customer money dynamic 5 of 30 Net interest income in m EUR Customer money dynamic over 9M23 in m EUR 1,417 1,407 -3.7bn EUR +3.7bn EUR 1,324 1,382 1,248 1,297 118 106 1,201 92 96 Insurance -0.2bn EUR 115 -5.7bn EUR +3.9bn EUR 98 111 -0.3bn EUR Banking -13.4bn EUR +14.1bn EUR
Slide 6: Higher net fee and commission income
Higher net fee and commission income 6 of 30 Net fee & commission income Assets under management in m EUR in bn EUR 570 576 584 588 228 225 227 542 557 549 217 9 10 11 12 211 205 206 8 8 9 Other Investment 45 46 49 41 40 42 advice Banking 40 240 256 262 262 268 239 249 services 67 63 65 64 Fund-of-F
Slide 7: Non-life and Life sales significantly up y-o-y
Non-life and Life sales significantly up y-o-y 7 of 30 Non-life sales Life sales in m EUR in m EUR 723 727 30 32 599 667 577 538 218 511 501 483 558 297 27 477 422 31 438 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 28 388 32 Hybrid products 247 29 • Non-Life sales up by 11% y-o-y, with growth in all countrie
Slide 8: Costs excluding bank & insurance taxes slightly increased q-o-q
Costs excluding bank & insurance taxes slightly increased q-o-q 8 of 30 Operating expenses (including costs directly attributable to insurance) in m EUR • Operating expenses excluding bank & insurance taxes went up by 1% q-o-q 1,648 and by 6% y-o-y 1,516 • The q-o-q increase is due mainly to higher
Slide 9: Robust Asset Quality
Robust Asset Quality 9 of 30 Asset impairment Q-o-q change in the outstanding ECL for geopolitical in m EUR; negative sign is a release and emerging risks 132 in m EUR; negative sign is a release 102 63 23 27 YTD ECL impact: -138m EUR 51 429 20 -18 -21 42 8 -40 103 95 -39 -59 291 28 36 31 19 40 18 1
Slide 10: Diversified loan portfolio
Diversified loan portfolio 10 of 30 Total loan portfolio outstanding Total loan portfolio outstanding | by segment as % of total Group loan portfolio outstanding* Total loan portfolio outstanding 202bn EUR* Corporate 37.6% Retail 40.8% Group level Total loan portfolio outstanding | by sector as % of
Slide 11: Strong capital position with substantial buffer to MDA
Strong capital position with substantial buffer to MDA 11 of 30 Capital requirements and distance to Maximum Distributable Amount (MDA) restrictions as at 30 SEP 2023 (fully loaded, B3) in % Regulatory requirement 18.1 Fully loaded B3 common equity ratio amounted to 14.6% at the KBC Group 2.0 Tier 2
Slide 12: Upcoming mid-term funding maturities
Upcoming mid-term funding maturities 12 of 30 Total outstanding | 3Q23 Funding program | 3Q23 in % • In September 2023, KBC Group issued an AT1 for an amount of 750m EUR KBC Bank has 6 solid sources of long-term funding: (i) Retail term deposits, (ii) Retail EMTN, (iii) Public benchmark transactions
Slide 13: Above resolution requirements of 9M23 in terms of MREL
Above resolution requirements of 9M23 in terms of MREL 13 of 30 MREL targets MREL actuals • The resolution plan for KBC is based on a Single Point of Entry • The MREL ratio in % of RWA decreased from 32.2% in 1H23 to 30.2% in (SPE) approach at KBC Group level, with bail-in as the preferred 9M23. Thi
Slide 14: Sustainability highlights
Sustainability highlights 14 of 30 Commitment to climate action Sustainable business Social responsibility 2030 and 2050 climate targets Social bond 7.4bn EUR Committed to a first set of climate Issued a second social bond for Financing contributing to targets for the most material investments in he
Slide 15: KBC's ESG ratings and indices are ahead of the curve
KBC’s ESG ratings and indices are ahead of the curve 15 of 30 Agency ESG rating 29th of December 2023 Position versus industry average D- A • Leader in addressing climate change • CDP’s A list A • Financial average service B- Severe Risk High Risk Medium Risk Low Risk Negligible Risk • 2nd percentil
Slide 16: Direct environmental impact: our progress in brief
Direct environmental impact: our progress in brief 16 of 30 DIRECT environmental footprint (FY 2022) More details in our 2022 Sustainability Report • In 2020, we set more stringent ambitions to reduce the GHG emissions resulting from our own operations • Furthermore, we included commuter travel in o
Slide 17: Indirect environmental impact: our progress in brief
Indirect environmental impact: our progress in brief 17 of 30 INDIRECT environmental footprint (FY 2022) Loan portfolio (selection of sectors) reduction compared to 2021 baseline, otherwise indicated • We refer to our Collective Commitment to Climate Mortgages and commercial Operational lease Electr
Slide 18: 2023 update of KBC Green Bond framework
2023 update of KBC Green Bond framework 18 of 30 A Framework aligned with the best market practices RATIONALE FOR ISSUANCE OF GREEN BONDS KBC GREEN BOND FRAMEWORK: ALLIGNED WITH 2021 ICMA GREEN BOND PRINCIPLES Green Bond Eligible Assets include financing in Belgium in the following categories: USE O
Slide 19: 2023 update of KBC Green Bond framework: Use of proceeds
2023 update of KBC Green Bond framework 19 of 30 A Framework aligned with the best market practices USE OF PROCEEDS ICMA GBP Energy Efficient Buildings Renewable Energy Clean Transportation Category Mortgage loans and commercial loans to Loans to (re)finance equipment, development, (Re)financing of
Slide 20: 2023 update of KBC Green Bond framework: evaluation, selection and management
2023 update of KBC Green Bond framework 20 of 30 A Framework aligned with the best market practices PROCESS FOR EVALUATION & SELECTION MANAGEMENT OF PROCEEDS SUSTAINABILTY GOVERNANCE KBC intends to exclusively allocate an amount equivalent to the Green bond proceeds to a portfolio of Eligible Asse
Slide 21: 2023 update of KBC Green Bond framework: Impact reporting
2023 update of KBC Green Bond framework 21 of 30 A Framework aligned with the best market practices IMPACT REPORTING ALLOCATION OF PROCEEDS REPORT EXAMPLES OF IMPACT INDICATORS IN IMPACT REPORT Allocation report on an annual basis and publicly available on: o The total amount of proceeds allocated t
Slide 22: Second party Opinion by Sustainalytics
2023 update of KBC Green Bond framework 22 of 30 Second party Opinion by Sustainalytics EVALUATION SUMMARY Prior to issuance, KBC commissioned Sustainalytics to provide a Second Party Opinion to assess the alignment of its updated Green Bond Framework to ICMA’s Green Bond Principles 2021 and the EU
Slide 23: Updated Framework will be used for all new issuances
2023 update of KBC Green Bond framework 23 of 30 Updated Framework will be used for all new issuances EXISTING ISSUANCES WILL REMAIN USING THE 2018 GB FRAMEWORK THE 2023 GB FRAMEWORK WILL BE USED FOR NEW ISSUANCES 2018 2019 Green bond 1 500 mio Euro 2020 Settlement: 27/06/2018 2021 Maturity date: 27
Slide 24: KBC Group's legal structure and issuer of debt instruments
KBC Group’s legal structure and issuer of debt instruments 24 of 30 KBC Group NV AT 1 Tier 2 MREL Senior 100% 100% 100% 100% KBC Bank KBC Insurance KBC Global Services N.V. DISCAI* Covered bond No public issuance KBC IFIMA** Retail and Wholesale EMTN * DISCAI (Discovering AI) is a separate ful
Slide 25: Last credit ratings
Last credit ratings 25 of 30 Moody’s S&P Fitch Senior Unsecured Baa1 A- A Latest update: Tier II Baa2 BBB BBB+ 6 June 2023: Moody’s upgraded KBC Bank's long-term issuer and deposit ratings and affirmed KBC Group's issuer rating (outlook Group Additional Tier I Ba1 BB+ BBB- remains positive). The upg
Slide 26: KBC Green Bond framework and issuances
KBC Green Bond framework and issuances 26 of 30 Aligned with best practices and market Verification developments • One year after issuance and until maturity, a limited assurance report • The KBC Green Bond Framework is in line with the on the allocation of the Green Bond proceeds to Eligible Assets
Slide 27: KBC Social Bond framework and issuances
KBC Social Bond framework and issuances 27 of 30 Aligned with best practices and market Clear Social Bond governance developments Social Bond Eligible Assets include financing in Belgium in the Use following categories: • By adding the social aspect to its funding mix, KBC Bank of • Access to Essent
Slide 28: Glossary
Glossary 28 of 30 Combined ratio (non-life Short-term non-life insurance contracts: [claims and claim related costs net of reinsurance + costs other than claims and commissions] / [earned expected insurance) premiums received, net of reinsurance] Common equity ratio [common equity tier-1 capital] /
Slide 29: Contacts / questions
Contacts / questions 29 of 30 Kurt De Baenst direct +32 2 429 35 73 More information Investor Relations General Manager mobile +32 472 500 427 kurt.debaenst@kbc.be • Company website KBC • Quarterly Report Ilya Vercammen direct +32 2 429 21 26 Quarterly Reports • Table of results (Excel) Investor Rel
Slide 30: Disclaimer
Disclaimer 30 of 30 • This presentation is provided for information purposes only. It does not constitute an offer to sell or the solicitation to buy any security issued by the KBC Group. • KBC believes that this presentation is reliable, although some information is condensed and therefore incomple
KBC Group — Debt Investor Presentation (January 2024) on 6ix